China import tax

China's growth in exports accelerated after they entered the WTO which meant they must follow the trade rules of other countries. Although China agreed they did not obey these rules and the enforcement mechanism was weak. It was based on arbitration but when China ignored the rulings nothing else was done. Trump has changed this. He applies import taxes on China's exports to the US and this gets their attention. Phase one of the new trade agreement carries this same enforcement concept. Trump uses the threat of import taxes as a negotiating tool. It is only effective because he has carried out the threat. Businessmen understand that agreements aren't worth the paper they are printed on without effective enforcement. Too many diplomats think that if a country signs an agreement that is all it takes. The most recent example is Russia violating the 1987 missile agreement and Trump has suspended the deal.